Textile Industry Solutions
From machinery breakdowns to product liability, the world of textile industry is filled with risks. At iCare insurance, we offer comprehensive coverage to keep your textile business running smoothly. With us, you get tailored coverage like: Protection for property damage, business interruption, and equipment breakdown. Our team helps textile industries identify and mitigate risks to prevent losses. Also, at iCare, you get customised quotes to ensure you receive the best value for your business. iCare understands the textile industry well, so let us help you safeguard your operations!
Key Risks
- Global Snags: The geographically dispersed nature of the textile supply chain, with raw materials sourced, processed, and assembled across various countries, creates vulnerability to disruptions. These disruptions can be caused by port congestion, political instability, or natural disasters anywhere along the chain, potentially halting production and causing delays.
- Price Swings: The textile industry faces challenges due to fluctuations in the cost of raw materials, like cotton, wool, and synthetic fibres. These fluctuations can be caused by various factors, including weather variations, geopolitical events, and disruptions in the global supply chain. The unpredictable nature of these price swings can squeeze profit margins for textile companies.
- Product Perils: Faulty textiles can pose a serious safety risk to consumers, potentially leading to injuries. This can result in product recalls, lawsuits, and damage to a company’s reputation. To mitigate these risks, textile companies need to implement rigorous quality control measures throughout the production process.
- Eco Entanglements: The textile industry has a significant environmental footprint, and non-compliance with regulations regarding wastewater disposal, chemical use, and greenhouse gas emissions can be costly. Companies that fail to comply with environmental regulations face hefty fines and potential damage to their brand image. Consumers are becoming increasingly environmentally conscious, and companies that prioritise sustainable practices can gain a competitive edge.
- Cyber Snares: Textile companies are increasingly vulnerable to cyberattacks that can disrupt their operations in several ways. These attacks can steal intellectual property, such as designs or production processes, or expose sensitive customer data. Cyberattacks can be costly for companies to resolve and can damage consumer trust. Implementing robust cybersecurity measures is crucial for textile companies in today’s digital age.
Product
1. Standard Fire and Special Perils Policy for the Textile Industry
A typical fire and special dangers policy is a kind of property insurance created especially to shield textile companies from monetary losses brought on by certain perils specified in the policy. These risks usually include those that have the potential to seriously harm a textile plant and its belongings.
What does it cover?
Fire: This is the most common peril covered and includes damage caused by any accidental fire.
Lightning: Damage caused by a lightning strike is covered.
Explosion: This covers explosions from various sources, such as gas leaks or boiler malfunctions.
Riot, Strike, and Malicious Damage: Coverage is provided for damage caused by riots, strikes, or vandalism.
Theft: Loss or damage to insured property due to theft is covered.
What it doesn’t cover?
Floods: Flood damage is typically excluded unless specifically added by endorsement.
Earthquakes: Earthquake damage is typically excluded unless specifically added by endorsement.
Wear and tear: Gradual deterioration of property due to wear and tear is not covered.
Intentional damage by the insured: The policy does not cover losses caused by the policyholder’s intentional actions.
Additional coverage available for an extra premium:
Windstorm and Hail: Damage caused by windstorms or hail can be added to the policy for an additional premium.
Smoke: Coverage for smoke damage from non-fire-related events can be added.
2. Directors & Officers Liability
Insurance that shields a company’s directors and officers from financial damages if they are sued for decisions or acts taken while acting in their official capacity is known as directors and officers (D&O) liability insurance.
What does it cover?
Legal defence costs: D&O insurance covers the legal fees and other costs incurred by directors and officers in defending themselves against lawsuits.
Settlements and judgments: If a director or officer is found liable, the insurance policy can help pay for settlements or judgments awarded to the plaintiff.
Company advancement of defence costs: Some D&O policies also cover the company’s advancement of defence costs to directors and officers, which can be repaid later if the director or officer is not found liable.
What it doesn’t cover?
Fines and penalties: D&O insurance does not typically cover fines or penalties imposed on directors and officers by regulatory bodies.
Intentional wrongdoing: The policy will not cover losses caused by the intentional wrongdoing of directors and officers.
Employment-related claims: Claims brought against directors and officers in their capacity as employers, such as wrongful termination or discrimination, are typically not covered by D&O insurance.
Additional coverage available for an extra premium:
Insurance against work-related claims made against directors and officers is known as employment practices liability insurance.
Side A difference in conditions: This coverage can protect the company if its D&O policy has a lower limit of liability than the indemnification it provides to directors and officers.
3. Commercial general liability
Textile companies can safeguard themselves against physical injury and property damage claims from third parties resulting from their operations by obtaining commercial general liability (CGL) coverage. It’s an umbrella insurance that protects textile enterprises against a range of typical liability risks.
What does it cover?
Bodily injury: Coverage for injuries sustained by a third party on the company’s premises or due to the company’s operations.
Property damage: Protection against harm a company’s actions may bring to a third party’s property.
Product liability: Coverage for injuries or damages caused by defective products manufactured or sold by the textile business.
What it doesn’t cover?
Intentional wrongdoing: The policy won’t cover damages from the company’s intentional acts.
Pollution: CGL policies typically exclude pollution liability unless specifically added by endorsement.
Workers’ compensation: Injuries to employees are covered under separate workers’ compensation insurance.
Additional coverage available for an extra premium:
Business interruption: This coverage can help compensate for lost income if a covered peril disrupts the business operations.
Product recall: Coverage for costs associated with recalling defective products.
Cyber liability: Coverage for data breaches and other cyber security incidents.
4. Group Health Insurance
Employees and their families can obtain medical care through group health insurance, a program the business offers. Giving financial security for unforeseen medical expenses is a great advantage for textile workers and their families.
What does it cover?
Hospitalisation: Coverage for inpatient hospital stays, including room and board, surgery, and other medical services.
Physician services: Coverage for doctor visits, both inpatient and out-patient.
Prescription drugs: Coverage for medications prescribed by a doctor.
Preventive care: Coverage for preventive care services, such as annual checkups and screenings.
What it doesn’t cover?
Dental and vision care: These are typically covered by separate dental and vision insurance plans.
Long-term care: Coverage for long-term care services, such as nursing home care, is usually not included.
Pre-existing conditions: Some plans may have exclusions or waiting periods for pre-existing conditions.
Additional coverage available for an extra premium:
Dental and vision insurance: These plans can cover dental and vision care services.
Accident and critical illness insurance: These plans can provide additional benefits in case of an accident or critical illness.
5. Group Personal Accident
Group personal accident (GPA) insurance is a type of insurance specifically designed to protect textile industry employees from accidental injuries or death. It provides financial security to the insured employee or their beneficiaries in the event of an unfortunate accident.
What does it cover ?
Permanent partial disability: The insurance will cover a portion of the costs if an accident leaves a person permanently disabled, such as losing a limb or their sight.
Permanent total disability: If an accident leaves the employee permanently disabled, the policy pays a lump sum benefit.
Permanent partial disability: The insurance will cover a portion of the costs if an accident leaves a person permanently disabled, such as losing a limb or their sight.
Temporary complete disability: If an employee is injured and cannot work, the policy may replace their income for a set amount of time.
What it doesn’t cover?
Non-accidental injuries or illnesses: The policy only covers losses caused by accidents.
Self-inflicted injuries: The insured is not covered for injuries they purposefully cause themselves.
War or terrorism: Losses arising from war or terrorism are typically excluded.
Additional coverage available for an extra premium:
Medical expenses: Some policies offer coverage for medical expenses incurred due to an accident.
Funeral expenses: Coverage for funeral expenses can be added to the policy.
Accidental dismemberment: This coverage provides a benefit for the loss of a limb or sight in an accident.
6. Group Term Life
Group personal accident (GPA) insurance is a type of insurance specifically designed to protect textile industry employees from accidental injuries or death. It provides financial security to the insured employee or their beneficiaries in the event of an unfortunate accident.
What does it cover?
Accidental death: If an accident results in the insured employee’s death, the insurance provides a lump sum reward to the beneficiary.
Permanent total disability: If an accident leaves the employee permanently disabled, the policy pays a lump sum benefit.
In the event of a permanent handicap resulting from an accident, such as the loss of a limb or sight, the insurance will pay a partial payout.
Temporary complete disability: If an accident prevents the employee from working, the insurance may compensate lost income for a set amount of time.
What it doesn’t cover?
Non-accidental injuries or illnesses: The policy only covers losses caused by accidents.
War or terrorism: Losses arising from war or terrorism are typically excluded.
Additional coverage available for an extra premium:
Medical expenses: Some policies offer coverage for medical expenses incurred due to an accident.
Funeral expenses: Coverage for funeral expenses can be added to the policy.
Accidental dismemberment: This coverage provides a benefit for the loss of a limb or sight in an accident.
7. Marine Sales Turnover Policy
A Marine Sales Turnover (STOP) Policy is an insurance policy designed to streamline coverage for businesses in the textile industry involved in importing, exporting, or domestically selling textiles. Unlike traditional marine cargo insurance that requires individual shipment declarations, a STOP policy ensures your entire anticipated sales turnover for a year.
What does it cover?
Domestic purchases: Raw materials, consumables, and finished goods.
Imports: Coverage includes customs duty.
Exports: Typically covered on a FOB or CIF basis.
Domestic sales: Movement of finished goods from factory to warehouses or depots.
Storage: Coverage during temporary storage at intermediate locations.
Common perils: Theft, piracy, and damage during transit, loading, or unloading.
What it doesn’t cover?
Specific perils like flood or earthquake damage can be excluded unless added by endorsement.
Gradual wear and tear of property is not covered.
Losses caused by intentional actions of the insured are not covered.
Additional coverage available for an extra premium:
Windstorm and hail damage
Smoke damage from non-fire-related events
Business interruption due to a covered peril
8. Trade Credit policy
A trade credit policy in the textile industry protects textile businesses from financial losses due to unpaid customer invoices. It also safeguards against bad debts arising from customer insolvency or protracted defaults.
What does it cover?
Non-payment of invoices: The policy reimburses the textile business for a percentage of the insured invoice value if the customer fails to pay after a specified period.
Insolvency of the customer: Coverage is provided if the customer goes bankrupt and cannot fulfil their payment obligations.
Political risks: In some cases, protection against non-payment due to political instability or war in the customer’s country can be included.
What it doesn’t cover?
Poor creditworthiness of the customer: Losses due to selling to customers with a high risk of defaulting are typically not covered.
Pre-existing defaults: The policy won’t cover invoices from sales made to customers already in financial trouble.
The policy usually does not cover interest charges and collection costs.
Additional coverage available for an extra premium:
Extended coverage period: The standard policy time frame can be extended to cover a longer period for overdue payments.
Legal defence costs: Coverage for legal fees incurred while pursuing recovery of unpaid invoices.
Deductible buy-down: Reduce the amount the policyholder pays in the event of a claim.
9. Workmen Compensation Policy
Workmen’s compensation (WC) policy, or employee’s compensation insurance, is a mandatory insurance scheme in India for businesses like textile manufacturing. It safeguards employees in case of work-related injuries, illnesses, or death.
What does it cover?
Accidental death: Provides financial compensation to the deceased employee’s dependents.
Permanent total disability: Offers financial aid if an accident renders the employee incapable of working.
Permanent partial disability: Compensates for partial loss of function due to a work-related accident.
Temporary total disability: This type of disability provides income replacement for a limited period if a work accident leaves the employee unable to work.
Medical expenses: Covers medical costs incurred for treating work-related injuries or illnesses.
What it doesn’t cover?
Intentional self-inflicted injuries or illnesses are not covered.
Losses arising out of war or terrorism are typically excluded.
Pre-existing conditions unrelated to employment are not covered.
Additional coverage available for an extra premium:
Higher coverage limits: The statutory minimums can be increased for additional financial support.
Occupational disease coverage: Certain plans can be extended to cover specific occupational diseases common in textile industries, like respiratory ailments from exposure to dust or fumes.
Summary– iCare insurance offers comprehensive coverage for the textile industry by mitigating the risks faced by textile companies. Some of the key risks covered by iCare include property damage, business interruption, equipment breakdown, product liability, and cyberattacks. iCare offers a variety of insurance products to protect textile businesses from a range of troubles, which can be financial, legal, technical issues, or an act of god.
